US-China Trade War: Impacts on the Technology Sector

The ongoing trade conflict between the US and China is creating significant challenges for the global technology sector. With China's recent ban on rare earth mineral exports and the US imposing additional tariffs on Chinese software, the supply chains for critical components like semiconductors and AI applications are at risk. This article delves into the implications of these developments and how companies are preparing for potential disruptions in the semiconductor industry. Discover the far-reaching effects of this trade war on technology and innovation.

By Narendra Chaudhary Oct 12, 2025, 14:14 IST

Impact of the US-China Trade Conflict on Technology

Impact of the US-China Trade Conflict on Technology: Following China's ban on the export of rare earth minerals, the United States has imposed additional tariffs and restrictions on Chinese software. This development could exacerbate challenges for tech companies worldwide. The new regulations may severely disrupt the supply chain for rare earth minerals used in computer chips, military applications, and artificial intelligence.

According to China's new regulations, foreign companies must obtain permission to export any materials that incorporate Chinese rare earth minerals. This ban is expected to limit the supply of these critical resources. Meanwhile, US President Trump has announced a 100% additional tariff on China, aimed at halting the export of all types of critical software.

Companies around the globe are bracing for challenges in the semiconductor supply chain. It is anticipated that the ongoing trade war between the two nations will impact not only the supply chain but also the semiconductor industry and the AI sector. ASML Holding NV, a leading manufacturer of advanced semiconductors, may experience several weeks of delays in shipments.